2. Complete the following sentences

2.1. Here are some of the highlights from this major topic:

1. Debit means __________.

2. Credit means ___________.

3. Every transaction affects two __________ or more.

4. At least one account will be __________ and at least one account will be ___________.

5. The total of the amount(s) entered as debits must _________ the total of the amount(s) entered as credits.

6. When cash is received, ________ Cash.

7. When cash is paid out, ________ Cash.

8. To increase an asset, ___________ the asset account.

9. To increase a liability, __________ the liability account.

10. To increase owner's equity, ____________ an owner's equity account.

11. To increase revenues, __________ the revenues account.

12. To increase expenses, ________ the expense account.

2.2. Some general rules about debiting and crediting the accounts are:

1. Expense accounts are _________ and have ________ balances.

2. Revenue accounts are ___________ and have __________ balances.

3. Asset accounts normally have __________ balances.

4. To increase an asset account, __________ the account.

5. To decrease an asset account, __________ the account.

6. Liability accounts normally have __________ balances.

7. To increase a liability account, __________ the account.

8. To decrease a liability account, __________ the account.

2.3. Bookkeeping

1. Liability accounts are decreased with a ________.

2. A credit will increase the balance in a _________ account.

3. Credits are entered on the _________ side of a T-account.

4. The accounting equation remains in balance due to ________-entry bookkeeping.

5. Debits are entered on the ______ side of a T-account.

6. Asset account balances are reduced by a _________ entry.

7. The accounting _________ should always be in balance.

8. The book of original entry. ______________

9. Revenues cause an increase in owner's _________.

10. These cause owner's equity to decrease. ______________

11. The amount entered on the right side of a T-account. ______________

12. _____________ are income statement accounts with debit balances.

13. Accounts _______________ is a balance sheet account with a debit balance.

14. _______________ Depreciation is a balance sheet account with a credit balance.

15. The Retained Earnings account will be reduced with a __________ entry.

16. ______________ are income statement accounts with credit balances.

17. A sole proprietor's ___________ account will have a debit balance.

18. Accounts _____________ is a balance sheet account with a credit balance.

19. A ________ balance is an internal report to show that the general ledger's debit balances add up to the same total as the credit balances.

20. The requirement that each journal entry needs to have at least one debit and one credit is known as __________-entry bookkeeping.

21. These are entered on the left side of an account. ________

22. These are entered on the right side of an account. ________

23. These accounts will normally have a credit balance. ________

24. These accounts will normally have debit balances. ________

25. Sales are an example of retailers' operating __________________.

26. Accounts are contained in the general _________.

27. Entries for depreciation are first written in the general ____________.

28. The credit amount in the depreciation entry is recorded in __________________ Depreciation.

29. Under ________-entry bookkeeping a transaction affects a minimum of two accounts.

30. The accounting or bookkeeping ___________ is Assets = Liabilities + Stockholders' Equity.

31. Bona fide invoices from suppliers that are to be paid in 30 days are reported in Accounts _______.

32. The ______ of accounts receivable sorts the customers' balances according to the dates due.

33. These will reduce stockholders' equity. ________

34. The type of adjusting entry associated with a prepayment. ________

35. The type of account that is affected by the accrual of an expense. ________

36. Internal controls include the _______________ of duties.

37. A ___________-in-transit may be one of the adjustments appearing in the bank reconciliation.

38. Another term for supplier. ________

39. One to whom money is owed. ________

40. __________ Insurance is an asset account.

41. Revenues minus expenses equals _______  _ _______________.

42. Resources owned by a company (such as cash, accounts receivable, vehicles) are reported on the balance sheet and are referred to as _______________ ___

43. Obligations (amounts owed) are reported on the balance sheet and are referred to as________________.

44. Liabilities often have the word ___________ _____ in their account title.

45. The listing of all of the accounts available for use in a company's accounting system is known as the _____________  ___  ___________________.

46. Assets minus liabilities equals ___________________  _____________.

47. Large corporations must follow the _________________ basis of accounting.

48. Corporations whose stock is publicly traded must have their financial statements______________ by independent certified public accountants.

49. FASB is the acronym for __________ ___________ ___________ ________

50. _______________ entry bookkeeping will result in at least two accounts being involved in every transaction.

51. Every transaction will have one account being credited and one account being_________________.

52. The accounting equation is Assets = ________________ + Stockholders' (or Owner's) Equity.

53. Matching, cost, and full disclosure are examples of the fundamental or basic accounting__ ____________.

54. The profitability of a company for a specified period of time is reported on the__________________ statement.

55. The main components or elements of the income statement are _________________, expenses, gains, and losses.

56. Prepaid insurance is reported as an ______________ on a company's balance sheet.

57. The word «_________________» is often in the title of liability accounts.

58. The statement of cash flows explains the changes in cash and cash___________________ during the specified time interval.

59. The first section of the statement of cash flows is the _________________ activities.

60. The basic accounting equation is Assets = Liabilities + ____ ______  _______

61. The financial statement with a structure that is similar to the accounting equation is the _____________  _____________.

62. The financial statement that reports the portion of change in owner's equity resulting from revenues and expenses during a specified time interval is the ____________  _______________.